Business Intelligence

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To help companies make more data-driven decisions, business intelligence (BI) incorporates business analytics, data mining, data visualization, data resources and infrastructure, and best practices. In the 1960s, Business Intelligence initially originated as a method of knowledge sharing across organizations. In the 1980s, it further evolved alongside computer models for decision-making and converted data into insights before becoming unique offerings with IT-reliant service solutions from business intelligence teams (Fruhlinger et al., 2019)

1.    Data mining: To discover patterns in massive datasets, using databases, statistics and machine learning.

2.    Reporting: Discussing the study of data with stakeholders to derive logical conclusions and decisions accordingly.

3.    Performance metrics and benchmarking: Contrasting current performance data with historical data, usually using personalized dashboards, to monitor performance towards objectives.

4.    Descriptive analytics: To find out what happened using preliminary data analysis.

5.    Querying: business intelligence pulls the responses from the datasets by asking the data basic questions.

6.    Statistical analysis: Taking the findings from descriptive analytics and analyzing the data further using statistics such as how and why this pattern occurred.

7.    Data visualization: To access data more efficiently, convert data analysis into visual representations such as maps, graphs, and histograms.

8.    Visual analysis: To share ideas on the fly and remain in the analysis flow, exploring data through visual storytelling.

9.    Preparation of data: collection of different sources of data, identification of dimensions and measurements, preparation for data analysis.

How does Business Intelligence function?

Questions and objectives are developed by organizations. They collect the required data, evaluate it, and decide which steps to take to achieve their objectives to address these questions and monitor success against these objectives. On the technical hand, raw data from the operations of the organization is obtained. Data warehouses helps to process this data and store it. Users can then access the data once it's stored, beginning the review process to address business questions (Tableau)

Importance of Business Intelligence

  • By showing current and historical data within their business background, business intelligence can help businesses make informed decisions
  • To make the enterprise run faster and more effectively, analysts can use business intelligence to provide performance and competitor benchmarks.
  • To boost sales or revenue, analysts can often more quickly spot industry patterns.

What does the future hold for business intelligence?

In line with market needs and technology, business intelligence is constantly changing, so emerging trends are recognized every year to keep users up-to-date on developments. Realize that it will continue to expand in artificial intelligence and machine learning, and companies should incorporate artificial intelligence insights into a wider business intelligence strategy. As businesses aspire to be more data-driven, data sharing and collaboration efforts will increase. To work together across teams and agencies, data visualization would be even more important. Various industries such as banking, insurance, and oil have embraced business intelligence over the years and more industries are yet to enter. Business intelligence systems are adapting to emerging technologies and user creativity (Tableau)

 

Author: Udit Shokeen

 

#BusinessIntelligence #BI #BIFunctions #BIImportance #BIFuture #BIMechanisms

 

References


Fruhlinger, Pratt. (2019) What is Business Intelligence? Transforming Data into Business Insights. Available at: https://www.cio.com/article/2439504/business-intelligence-definition-and-solutions.html(Accessed: 18/2/21).


Tableau, What is Business Intelligence? Your guide to BI and why it matters. Available at: https://www.tableau.com/learn/articles/business-intelligence (Accessed: 18/2/21).

Comments

  1. Sergio Augusto24 February 2021 at 10:52

    I did not know much about Business Intelligence until now. I think your highlights can bring small and medium businesses to the subject quite well. It is interesting how data analytics can change the whole working model. We can see they offer a way to think about how we can serve better our customers. Data warehouses play an impactful role in these procedures, but we need to emphasise the importance of organising their data collection and knowing the questions before the answers come out. I believe that entrepreneurs have a chance of extracting beneficial information from it.

    ReplyDelete
  2. James White25 February 2021 at 07:18

    Thanks for this post Udit. It is really interesting and a really fascinating topic to discuss. Companies use of Business Intelligence is always evolving and the use of data and Artificial intelligence makes this process essential for any business to succeed in the modern climate. You mentioned that major companies in banking, insurance and oil are using BI to their advantage. I would argue that the use of BI is far more prominent across a lot of industries. For example, most online shopping businesses are using AI and data analysis to make user experiences better and more personalised for their clients. Thanks for writing this and I look forward to more content from you in the future.

    James

    ReplyDelete
  3. Natassya Coelho1 March 2021 at 11:09

    This is a good discussion, Udit! From my point of view, we are experiencing an information age, and the excess of data is a problem that affects many entrepreneurs. In this particular scenario, Business Intelligence plays a special role, the process of collection, organisation and analysis of that information can bring benefits and competitive advantage for many industries. Business decisions are always an inherent risk, but when an effective and reliable BI solution is implemented the risks are lower. Organisation that correctly use this information can move forward in an increasingly data-driven climate with confidence because they are prepared for any challenge that arises.

    ReplyDelete

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